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Larry Downing/Reuters
Franklin D. Raines, left, and J. Timothy Howard in 2004. The government wants to recover bonus payments to them and another officer. |
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http://www.nytimes.com/2006/12/19/business/19fannie.html?_r=1&oref=slogin
Posted on 06/15/2008 2:01:42 PM PDT by dennisw
Fannie Mae is insolvent, IMO.
I thought Hell had frozen over that WaPo had used that title.
Wasn’t that nicompoop Gorelick on the fraudulent 911 Commission?
Bilderberg Group bears watching as much as George Soros.
bookmark for later
Yup. Her job was to keep the heat off Bill Clinton, herself, and quash any questions regarding National Security Thief Sandy Burglar.
She did an excellent job. By the way, Sandy Berger has a consulting firm named Stonebridge International specializing in international "situations." On his Board of Reference is non other than Lee hamilton, Co-chair of the 9-11 Commission.
Is there a "journalist" who cares, or wonders about this? Nope.
Federal regulators continuing to pore over Fannie Mae's books have uncovered additional accounting irregularities. The questions on accounting, in addition to those uncovered last year that forced Fannie Mae to restate its earning by $9 billion over three years, could make it harder for Fannie Mae to reach its goal of increasing capital reserves by $5 billion by June.
When the accounting scandal hit the No. 1 buyer of U.S. mortgages December 2004, CEO Franklin Raines and CFO J. Timothy Howard got the boot.
The accounting mess last year and the latest additional problems were uncovered by the Office of Federal Housing Enterprise Oversight, Fannie Mae's regulator. Fannie Mae released the news of the latest problems deep into a press release that merely updated the yearlong probe. OFHEO said the additional problems related to "securities accounting, loan accounting, consolidations, accounting for commitments, and, practices to smooth certain income and expense amounts."
An eight-month investigation by OFHEO, which crested in September, found serious accounting problems at the government-sponsored company as well as a pervasive pattern of earnings manipulation and lax internal controls. Fannie Mae shares, which have been battered in the weeks since its accounting crisis came to light, fell 64 cents to close at $57.16 on the New York Stock Exchange, its lowest level in more than four years and 30 percent below its high of $80.82 a year ago.
"We're getting a broader, more detailed understanding of the specific accounting issues, but I don't see this as anything new," said Bert Ely, a banking consultant in Alexandria, Va., and longtime critic of Fannie Mae. In its statement, the company said its board and management "are addressing the issues and questions."
http://www.nypost.com/business/22094.htm With NY Post wire services
Although Fannie Mae chief Franklin Raines was fired for bungling its books, he'll get a $26 million parachute — not counting a monthly pension of $116,300 for life.
The 55-year-old Washington, D.C. insider and his CFO J. Timothy Howard left their jobs last week under a cloud of suspicion that the execs undermined the financial soundness of Fannie Mae, creating losses of up to $9 billion. Regulators overseeing Fannie Mae urged it not to pay any benefits to either executive until reviews are made of their contracts, filings said yesterday.
RAINES PAYOUT Fannie Mae's filings state Raines owns options giving him $5.8 million in net profit after redeeming them, plus another $8.7 million in deferred compensation for his six years at the helm. Raines has already collected $4.87 million in special performance shares this year and also keeps $5 million of paid-up life insurance.
He and his spouse get free medical and dental benefits for life, worth over $1 million. Last year, Raines earned $20 million in salary, bonuses and stock awards.
After he was fired, Raines told the board that he's entitled to get paychecks until next June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension. He also says he's entitled to disputed options with a gross value of about $5.6 million.
To keep Raines happy within philanthropic circles, Fannie Mae will match his charitable contributions by $10,000 a year.
The Securities and Exchange Commission said Raines broke accounting rules by playing with risky derivatives.
Raines' CFO Howard gets a parachute valued at more than $13.1 million — not including a monthly pension of $36,071 for life. Howard gets free medical and dental coverage for himself and family for life, and as well as the matching $10,000 annual perk in making charitable contributions.
There should be Capitol Hill hearings - no? (PROFITS no one can even imagine...)
Yep. Hearings indeed. We need to get behind the CEO’s and the accountants that cook the books.
http://en.wikipedia.org/wiki/Franklin_Raines
Liz you homed in on the lowest thief of all. Franklin Raines. I hope he dies of a heart attack and never enjoys his stolen wealth
He started off honest. I remember him pre- Fannie Mae where he was budget director for Bill Clinton
Gee....if you didn't know better, you'd almost think that Raines (and others) were given these positions as quid pro quo, or something..... < /sarcasm >
In 1999, he returned to Fannie Mae as CEO, “the first Black man to head a Fortune 500 company.” [Charles Whitaker, Franklin Raines: First Black Head of a Fortune 500 Corporation — Fannie Mae, Ebony (April 2001)]
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Larry Downing/Reuters
Franklin D. Raines, left, and J. Timothy Howard in 2004. The government wants to recover bonus payments to them and another officer. |
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http://www.nytimes.com/2006/12/19/business/19fannie.html?_r=1&oref=slogin
So, Jamie Gorelick did well for herself after leaving the administration of x42, huh?
Thanks for the update. All I can is “damn, just damn!” The RATS get away with anything.
bump.
Yes. IIRC, she made the ruling that allowed the computer of one of the captured terrorists (before 911) NOT to be examined. Gorelick’s “wall” or some such bs.
Everyone really needs to think about that one.
Raines, in shirtsleeves, walked into a large room to applause that sounded forced (not a standing ovation by any means---the board was seated).
Raines, himself, had an odd look on his face--kind of a smug smirk. And he was looking down--not at the board members. Judge Judy would not have liked that---she would have admonished him.
Now we know---he was already planning his Fannie Mae heist, from the getgo.
Makes one wonder how much actual time he spent on the public's business.
With all that loot he walked away with, he musta spent a lot of time figuring out ways to fill his pockets.
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